GlobeNewswire Inc | Aug 12, 2021 09:37AM EDT

August 12, 2021

WABASH, Ind., Aug. 12, 2021 (GLOBE NEWSWIRE) -- FFW Corporation (the Corporation) (OTC PINK: FFWC) (8/11/2021 Close: $46.50), parent corporation of Crossroads Bank (the Bank), announced earnings for the fiscal year ended June 30, 2021.

For the three months ended June 30, 2021, the Corporation reported net income of $1,379,000 or $1.21 per common share compared to $1,399,000 or $1.23 per common share for the three months ended June 30, 2020. Net interest income for the three months ended June 30, 2021 was $3,608,000 compared to $3,637,000 for the three months ended June 30, 2020. The provision for loan losses was ($150,000) for the three months ended June 30, 2021 and $105,000 for the three months ended June 30, 2020. Total noninterest income was $1,248,000 for the three months ended June 30, 2021 compared to $1,367,000 for the three months ended June 30, 2020. Noninterest expense was $3,419,000 for the three months ended June 30, 2021 and $3,236,000 for the three months ended June 30, 2020.

For the twelve months ended June 30, 2021, the Corporation reported net income of $6,476,000 or $5.67 per common share compared to $5,011,000 or $4.40 per common share for the twelve months ended June 30, 2020. Net interest income for the twelve months ended June 30, 2021 was $14,697,000 compared to $14,176,000 for the twelve months ended June 30, 2020. The Company recognized a provision for loan losses of $345,000 for the twelve months ended June 30, 2021 and $305,000 for the twelve months ended June 30, 2020. Total noninterest income was $6,961,000 for the twelve months ended June 30, 2021 compared to $4,197,000 for the twelve months ended June 30, 2020. Noninterest expense was $13,674,000 for the twelve months ended June 30, 2021 and $12,232,000 for the twelve months ended June 30, 2020.

The three and twelve months ended June 30, 2021 represented a return on average common equity of 10.37% and 12.42%, respectively, compared to 11.78% and 10.72% for the three and twelve month periods ended June 30, 2020. The three and twelve months ended June 30, 2021 represented a return on average assets of 1.12% and 1.36%, respectively, compared to 1.24% and 1.17%, for the three and twelve month periods ended June 30, 2020.

The allowance for loan losses as a percentage of gross loans receivable was 1.43% at June 30, 2021 compared to 1.29% at June 30, 2020. Nonperforming assets were $3,242,000 at June 30, 2021 compared to $3,551,000 at June 30, 2020.

As of June 30, 2021, FFWCs equity-to-assets ratio was 10.89% compared to 10.66% at June 30, 2020. Total assets at June 30, 2021 were $486,442,000 compared to $461,724,000 at June 30, 2020. Shareholders equity was $52,954,000 at June 30, 2021 compared to $49,198,000 at June 30, 2020. Crossroads Bank exceeds all applicable regulatory requirements to be considered well capitalized.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as expects, intends, believes, and should, which are necessarily statements of belief as to the expected outcomes of future events. Actual results could materially differ from those presented. The Corporation's ability to predict future results involves a number of risks and uncertainties. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and twelve Indiana banking centers located in Columbia City, North Manchester, Peru, South Whitley, Syracuse and Warsaw. The Bank also provides leasing services at each of its banking centers. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The Corporations stock is traded on the OTC Markets under the symbol FFWC. Our website address is www.crossroadsbanking.com. Crossroads Bank, Member FDIC.

FFW CorporationSelected Financial Information

Consolidated Balance Sheet

June 30 June 30 2021 2020 Unaudited Assets Cash and due from financial institutions $ 4,779,188 $ 6,084,611 Interest-bearing deposits in other 51,646,720 30,077,626 financial institutions Cash and cash equivalents 56,425,908 36,162,237 Securities available for sale 116,335,455 86,147,475 Loans receivable, net of allowance for loan losses of $4,168,689 atJune 30, 2021 and $4,098,026 at June 30, 285,643,064 303,102,891 2020Loans held for sale 2,613,987 10,876,733 Federal Home Loan Bank stock, at cost 1,462,500 1,462,500 Accrued interest receivable 2,131,744 2,281,588 Premises and equipment, net 8,949,842 9,338,832 Mortgage servicing rights 1,011,046 731,190 Cash surrender value of life insurance 9,459,746 9,159,293 Goodwill 1,213,898 1,213,898 Repossessed Assets 148,621 145,782 Other assets 1,045,876 1,101,841 Total assets $ 486,441,687 $ 461,724,260 Liabilities and shareholders' equity Deposits Noninterest-bearing $ 49,510,375 $ 42,014,196 Interest-bearing 380,084,790 366,527,945 Total deposits 429,595,165 408,542,141 Accrued expenses and other liabilities 3,892,719 3,984,019 Total liabilities 433,487,884 412,526,160 Shareholders' equity Common stock, $.01 par; 2,000,000 shares authorized; Issued: 1,836,328; outstanding: 1,141,190 - June 30, 2021 and 18,363 18,363 1,129,394 - June 30, 2020Additional paid-in capital 9,809,754 9,826,124 Retained earnings 51,852,194 47,660,175 Accumulated other comprehensive income 3,058,832 3,634,798 Treasury stock, at cost: 695,138 sharesat June 30, 2021 and 706,934 shares at (11,785,340 ) (11,941,360 )June 30, 2020 Total shareholders' equity 52,953,803 49,198,100 Total liabilities and shareholders' $ 486,441,687 $ 461,724,260 equity

FFW CorporationSelected Financial Information

Consolidated Statement of Income

Three Months Ended June 30 Twelve Months Ended June 30 2021 2020 2021 2020 Unaudited Unaudited Interest and dividend income: Loans, $ 3,257,093 $ 3,631,205 $ 13,769,397 $ 14,804,286 including fees Taxable 313,689 349,342 1,308,266 1,391,566 securities Tax exempt 418,267 329,816 1,627,426 1,268,773 securities Other 14,860 5,613 38,650 239,067 Total interest and 4,003,909 4,315,976 16,743,739 17,703,692 dividend income Interest expense: Deposits 395,295 679,327 2,046,577 3,497,764 Borrowings 200 - 200 29,434 Total interest 395,495 679,327 2,046,777 3,527,198 expense Net interest 3,608,414 3,636,649 14,696,962 14,176,494 income Provision for (150,000 ) 105,000 345,000 305,000 loan losses Net interestincome after provision for loan losses 3,758,414 3,531,649 14,351,962 13,871,494 Noninterest income: Net gains on sales of - 25,503 98,467 20,958 securities Net gains on 417,457 693,285 3,632,838 1,298,996 sales of loans Net gains (losses) on - - 9,204 - fixed assets Net gains (losses) on - (12,986 ) (23,498 ) (33,854 ) sales of REO Commission 309,389 280,750 1,224,845 1,145,772 income Service charges and 188,237 84,895 721,677 633,476 fees Earnings on 75,757 73,864 300,452 291,693 life insurance Other 257,103 221,248 996,765 839,903 Total noninterest 1,247,943 1,366,559 6,960,750 4,196,944 income Noninterest expense: Salaries and 1,875,637 1,792,027 6,885,238 6,631,880 benefits Occupancy and 325,235 288,374 1,339,852 1,161,072 equipment Professional 143,066 52,291 850,073 470,967 Marketing 104,293 111,551 431,982 407,145 Deposit insurance 33,000 14,912 132,000 53,851 premium Regulatory 9,588 8,954 37,705 37,002 assessment Correspondent 18,881 16,853 71,511 75,931 bank charges Data 391,172 385,597 1,613,051 1,416,850 processing Printing, postage and 62,193 79,924 292,047 294,099 supplies Expense on 20,518 14,895 72,827 59,579 life insurance Contribution 11,138 59,558 70,753 94,538 expense Expense on REO 5,626 15,833 18,683 45,515 Other 418,361 395,547 1,858,369 1,483,412 Total noninterest 3,418,708 3,236,316 13,674,091 12,231,841 expense Income before 1,587,649 1,661,892 7,638,621 5,836,597 income taxes Income tax 208,465 262,844 1,163,097 825,368 expense Net income $ 1,379,184 $ 1,399,048 $ 6,475,524 $ 5,011,229



FFW CorporationSelected Financial Information

Key Balances and Ratios

Three Months Ended June 30 Twelve Months Ended June 30 2021 2020 2021 2020 Unaudited Unaudited Per common share data:Earnings $ 1.21 $ 1.23 $ 5.67 $ 4.40 Diluted $ 1.21 $ 1.23 $ 5.67 $ 4.40 earningsDividends paid $ 1.25 $ 0.23 $ 2.00 $ 0.92 Average sharesissued and 1,141,717 1,129,394 1,142,448 1,138,115 outstandingSharesoutstanding 1,141,190 1,129,394 1,141,190 1,129,394 end of period Supplemental data:Net interest 3.11 % 3.45 % 3.29 % 3.54 %margin **Return onaverage assets 1.12 % 1.24 % 1.36 % 1.17 %***Return onaverage common 10.37 % 11.78 % 12.42 % 10.72 %equity *** June 30 June 30 2021 2020 Nonperforming $ 3,241,581 $ 3,550,611 assets *Repossessed $ 148,621 $ 145,782 assets * Includes non-accruing loans, accruing loans delinquent more than 90 days and repossessed assets Yields reflected have not** been computed on a tax equivalent basis*** Annualized

FOR MORE INFORMATION Contact: Emily Boardman, Treasurer, at (260) 563-3185